|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD187.38
million
|
|
CAGR
(2023-2028)
|
4.17%
|
|
Fastest
Growing Segment
|
Oxygen
|
|
Largest
Market
|
Central
|
Market Overview
Vietnam Industrial Gases Market has valued at
USD187.38 million in 2022 and is anticipated to project robust growth in the
forecast period with a CAGR of 4.17% through 2028. The rapid industrialization
in Vietnam has led to an increased demand for industrial gases, which play a
vital role in various sectors such as manufacturing, healthcare, food and
beverage, and energy. These gases are essential for processes like welding,
refrigeration, and chemical reactions, making them indispensable for many
industries.
As the country continues to develop its industrial
sector, the need for industrial gases is expected to rise even further. With
the expansion of manufacturing facilities and the increasing adoption of
advanced technologies, the demand for these gases will continue to grow. This
presents significant opportunities for businesses operating in the industrial
gases market.
The Vietnamese government has recognized the
importance of supporting the growth of the industrial gases market. They have
implemented strategic initiatives to promote industrial development and
encourage investments in this sector. These efforts have indirectly contributed
to the increased demand for industrial gases by creating a favorable
environment for businesses to thrive.
Furthermore, the government has implemented
regulations to ensure the safe production, storage, and transportation of
industrial gases. These regulations not only maintain industry standards but
also provide a sense of security for businesses and consumers alike.
In conclusion, Vietnam's industrial gases market is
experiencing positive growth due to several factors. The country's rapid
industrialization, combined with the strategic initiatives of key market
players and strong government support, is driving the expansion of this market.
As Vietnam continues to grow and develop, the demand for industrial gases is
expected to rise steadily, presenting numerous opportunities for businesses
operating in this sector.
Key Market Drivers
Growing Demand of Industrial Gases in Food &
Beverage Industry
The food and beverage industry in Vietnam is
experiencing unprecedented growth, driven by the rising consumer demand for a
diverse range of products and the evolving lifestyle trends of the population.
With a burgeoning middle class and an increasing number of urban dwellers, the
demand for conveniently packaged and readily available food and beverages has
skyrocketed.
As this industry continues to expand, the need for
industrial gases has become more pronounced. These gases play a vital role in
various aspects of food and beverage production, including packaging,
preservation, and carbonation. From ensuring the freshness and quality of
perishable goods to creating the effervescence in carbonated drinks, industrial
gases have become an indispensable component of the manufacturing process.
The Vietnamese government recognizes the importance
of supporting industrial development and has implemented initiatives to foster
growth in this sector. By providing incentives and creating a favorable
business environment, the government indirectly contributes to the increasing
demand for industrial gases. Moreover, stringent regulations have been put in
place to ensure the safe production, storage, and transportation of these
gases, thus maintaining high industry standards, and safeguarding the well-being
of both workers and consumers.
In conclusion, the growing demand for industrial
gases in the food and beverage industry is not only driving the expansion of
Vietnam's industrial gases market but also playing a vital role in the overall
growth and development of the country's economy. As the food and beverage
industry continues to thrive, propelled by changing consumer preferences and
lifestyle habits, the demand for industrial gases is expected to further
increase, creating new opportunities, and fueling the growth of this market.
Growing Demand of Industrial Gases in Healthcare
Industry
Industrial gases play a crucial role in the
healthcare sector, serving a wide range of applications that contribute to the
well-being of patients. These gases, including oxygen, nitrous oxide, nitrogen,
and medical air, are essential for respiratory therapies, surgical procedures,
clinical research, and medical imaging. They ensure the safety and
effectiveness of various healthcare treatments, improving patient outcomes and
quality of care.
Vietnam's healthcare industry is experiencing rapid
growth, driven by multiple factors that are shaping the landscape of healthcare
in the country. With an aging population, there is an increasing demand for
healthcare services, leading to the expansion of healthcare facilities and the
need for advanced medical technologies. Additionally, the rising health
awareness among the Vietnamese population has resulted in a greater emphasis on
preventive healthcare measures and early detection of diseases. The
government's initiatives to improve healthcare infrastructure and enhance
access to quality healthcare services have further accelerated the growth of
the industry.
As the healthcare industry in Vietnam continues to
expand, the demand for industrial gases is expected to rise significantly. The
use of industrial gases in healthcare facilities is not only essential for
patient care but also contributes to maintaining industry standards and
ensuring the safe production, storage, and transportation of these gases. The
Vietnamese government's regulations and guidelines regarding the use of
industrial gases have played a crucial role in maintaining the integrity and
safety of the industry.
Download Free Sample Report
Key Market Challenges
Volatility in Raw Material Prices
The industrial gases market, like many other
industries, heavily relies on various raw materials for production. These
materials, including natural gas, oil, and electricity, play a crucial role in
the manufacturing process. However, the price volatility associated with these
raw materials can lead to significant fluctuations in the cost of producing
industrial gases, which in turn can adversely impact profit margins and hinder
overall market growth.
In Vietnam, the situation is further exacerbated by
additional factors such as retail gasoline shortages and fluctuating exchange
rates. These factors not only contribute to the volatility of raw material
prices but also have ripple effects on transportation and operational costs,
putting additional strain on the market.
The consequences of price volatility in the
industrial gases market are far-reaching. For instance, it can create
uncertainty in planning and budgeting, making it challenging for businesses to
invest in capacity expansion or adopt new technologies. This, in turn, could
potentially hinder the growth and development of the market.
Moreover, the impact extends beyond the industrial
gases market itself. End-use industries that heavily rely on industrial gases,
such as healthcare, food & beverage, and manufacturing, are also affected
by price fluctuations. Increased costs in acquiring these essential gases can
have a direct impact on the growth and profitability of these industries.
Considering the intricate relationship between raw
material prices, market dynamics, and the broader economy, it becomes evident
that addressing price volatility in the industrial gases market is crucial for
sustainable growth and stability.
Key Market Trends
Technological Advancements in Electronics and
Semiconductor Manufacturing
The semiconductor industry is currently
experiencing a transformative phase, driven by the surging demand for
application-specific semiconductors and the emergence of cutting-edge
technologies such as Artificial Intelligence (AI) and the Internet of Things
(IoT). These advancements have sparked a new wave of innovation in
semiconductor manufacturing, leading to an increased need for industrial gases.
Industrial gases play a crucial role in various
stages of semiconductor manufacturing processes, including wafer fabrication,
chip manufacturing, and packaging. They are essential for creating the optimal
environment and conditions required for precise and efficient production. The
rising demand for semiconductors, fueled by rapid technological advancements,
has consequently intensified the demand for industrial gases, thereby
propelling the growth of the industrial gases market.
Vietnam, known as a significant player in the
global electronics and semiconductor industry, is witnessing a notable increase
in the demand for industrial gases. The country boasts a robust electronics
sector, which, coupled with the government's proactive initiatives to foster
industrial development, is further driving the growth of this market. As
Vietnam continues to attract investments and expand its semiconductor
manufacturing capabilities, the demand for industrial gases is expected to rise
even further, shaping the future of the industrial gases market in the region.
In conclusion, the rapid technological advancements
in the electronics and semiconductor manufacturing sectors are significantly
influencing Vietnam's industrial gases market. As these industries continue to
grow and innovate, the demand for industrial gases is expected to witness
continuous growth, solidifying the pivotal role of industrial gases in shaping
the future of this market.
Segmental Insights
Product Insights
Based on the category of product, the oxygen
segment emerged as the dominant player in the Vietnamese market for industrial
gases in 2022. Oxygen, with its myriad applications, holds a significant role
across various industries in Vietnam. In the metallurgy sector, this versatile
gas finds its utility in crucial processes like steel melting and oxygen
scarfing, enabling efficient production. Moreover, it is extensively utilized
in gas welding and cutting, flame cleaning, and flame straightening, contributing
to the overall productivity and quality of metalworking operations.
In the healthcare domain, oxygen assumes a crucial
role in respiratory therapies, where it aids patients with breathing
difficulties, as well as in surgical procedures and medical imaging, where it
facilitates accurate diagnoses and treatments. Additionally, the use of oxygen
in pollution control showcases its multifaceted nature, as it plays a vital
role in mitigating environmental impact and promoting sustainable practices.
The growth of end-user industries, including
metallurgy and healthcare, has significantly fueled the demand for oxygen in
Vietnam. The country's robust industrial development, coupled with government
initiatives to improve healthcare infrastructure, has further amplified the
indirect need for this essential gas. As Vietnam continues to advance
industrially and prioritize the well-being of its citizens, the importance of
oxygen as a key industrial gas becomes increasingly pronounced.
Mode of Distribution Insights
The tonnage segment is projected to experience
rapid growth during the forecast period. Vietnam's industrial sector is
experiencing remarkable growth, playing a pivotal role in the dominance of
tonnage in the industrial gases market. Various industries, including
metallurgy, healthcare, food & beverage, and electronics, heavily rely on
substantial volumes of industrial gases to fuel their operations and processes.
The tonnage mode of distribution caters to the specific needs of these
industries, ensuring efficient and reliable supply of the required quantities.
This efficiency and reliability make tonnage distribution the preferred choice
for many businesses in Vietnam's booming industrial landscape.
Download Free Sample Report
Regional Insights
Central emerged as the dominant player in the
Vietnam Industrial Gases Market in 2022, holding the largest market share in
terms of value. The central region of Vietnam has experienced remarkable
industrial development over the years. With a diverse range of established and
emerging industries, including metallurgy, healthcare, food & beverage, and
electronics, the demand for industrial gases in this region has reached new
heights. This can be attributed to the region's robust infrastructure, which further
facilitates industrial growth and accelerates the demand for industrial gases.
Moreover, the strategic location of the central
region, with its close proximity to key ports and industrial zones, positions
it as an ideal hub for the flourishing industrial gases market. This
advantageous location not only ensures efficient distribution and supply of
gases but also caters to the specific needs of various industries, fostering
their growth and competitiveness. As a result, the central region continues to
thrive as a prominent center for industrial activities, playing a vital role in
Vietnam's overall economic development.
Recent Developments
- In January 2023, Linde plc and Praxair Inc. proudly
announced a groundbreaking collaboration aimed at developing an innovative and
cutting-edge industrial gas separation technology, specifically tailored for
implementation in Vietnam. This revolutionary technology is meticulously
designed to not only enhance efficiency but also prioritize environmental
sustainability, surpassing the capabilities of traditional separation methods.
By leveraging this state-of-the-art solution, Linde and Praxair are poised to significantly
contribute to Vietnam's industrial sector while championing a greener and more
sustainable future.
Key Market Players
- Messer Vietnam industrial Gases
Co., Ltd.
- Linde AG
- Nippon
Sanso Holdings Corp
- SIG Group
Co. Ltd.
- Osaka Gas
Co Ltd
|
By Product
|
By Mode of Distribution
|
By Region
|
- Oxygen
- Nitrogen
- Hydrogen
- Carbon Dioxide
- Argon
- Helium
|
|
|
Report Scope:In this report, the Vietnam Industrial Gases Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Vietnam Industrial Gases Market, By Product:
o Oxygen
o Nitrogen
o Hydrogen
o Carbon Dioxide
o Argon
o Helium
- Vietnam Industrial Gases Market, By Mode of Distribution:
o Tonnage
o Bulk
o Packaged
- Vietnam Industrial Gases Market, By Region:
o Northern
o Central
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Vietnam
Industrial Gases Market.
Available Customizations:
Vietnam Industrial Gases Market report with the
given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Vietnam Industrial Gases Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]